Correlation Between MCX ICOMDEX and BIST Electricity
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By analyzing existing cross correlation between MCX ICOMDEX ALUMINIUM and BIST Electricity, you can compare the effects of market volatilities on MCX ICOMDEX and BIST Electricity and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in MCX ICOMDEX with a short position of BIST Electricity. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCX ICOMDEX and BIST Electricity.
Diversification Opportunities for MCX ICOMDEX and BIST Electricity
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between MCX and BIST is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding MCX ICOMDEX ALUMINIUM and BIST Electricity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIST Electricity and MCX ICOMDEX is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on MCX ICOMDEX ALUMINIUM are associated (or correlated) with BIST Electricity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIST Electricity has no effect on the direction of MCX ICOMDEX i.e., MCX ICOMDEX and BIST Electricity go up and down completely randomly.
Pair Corralation between MCX ICOMDEX and BIST Electricity
Assuming the 90 days trading horizon MCX ICOMDEX is expected to generate 4.45 times less return on investment than BIST Electricity. But when comparing it to its historical volatility, MCX ICOMDEX ALUMINIUM is 1.44 times less risky than BIST Electricity. It trades about 0.17 of its potential returns per unit of risk. BIST Electricity is currently generating about 0.53 of returns per unit of risk over similar time horizon. If you would invest 52,440 in BIST Electricity on February 4, 2024 and sell it today you would earn a total of 8,652 from holding BIST Electricity or generate 16.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 78.26% |
Values | Daily Returns |
MCX ICOMDEX ALUMINIUM vs. BIST Electricity
Performance |
Timeline |
MCX ICOMDEX and BIST Electricity Volatility Contrast
Predicted Return Density |
Returns |
MCX ICOMDEX ALUMINIUM
Pair trading matchups for MCX ICOMDEX
BIST Electricity
Pair trading matchups for BIST Electricity
Pair Trading with MCX ICOMDEX and BIST Electricity
The main advantage of trading using opposite MCX ICOMDEX and BIST Electricity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCX ICOMDEX position performs unexpectedly, BIST Electricity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BIST Electricity will offset losses from the drop in BIST Electricity's long position.MCX ICOMDEX vs. Arrow Greentech Limited | MCX ICOMDEX vs. PNC Infratech Limited | MCX ICOMDEX vs. Juniper Hotels | MCX ICOMDEX vs. V2 Retail Limited |
BIST Electricity vs. Koza Anadolu Metal | BIST Electricity vs. Cuhadaroglu Metal Sanayi | BIST Electricity vs. ICBC Turkey Bank | BIST Electricity vs. Gentas Genel Metal |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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